Databricks announced on Monday that it has increased its funding by up to $5 billion and raised to $2 billion in new debt capacity at a valuation of $134 billion.
The privately held data analytics software company stated that it had an annualized revenue of more than $5.4 billion in the January quarter, an increase of 65 percent over a year, and generated free cash flow in the past year.
Such a turnover could fuel the appetites of the public market investors who have not been afflicted with a lot of new public issues of technology companies with high growth rates.
In an interview with CNBC, Co-founder and CEO Ali Ghodsi informed CNBC that Databricks is prepared to go public “when the time is right.”
It is expected that this year will be characterized by major tech IPOs. People familiar with the matter reported that Anthropic and OpenAI, two rapidly expanding artificial intelligence labs, also have 2026 initial public offering plans.
Therefore, Elon Musk indicated in December that his rocket company, SpaceX, might also go public this year. Similar to numerous other organizations, Databricks is making profits off AI.
The company assists its clients in connecting their data with AI models to deploy custom agents, as well as offering tools for storing, processing, and querying data.
Databricks said in a statement that its artificial intelligence products generate annualized revenue of $1.4 billion. The overall growth rate of Databricks is increasing faster, and in June, the company predicted a 50 percent growth.
However, the company stated in December that it was raising more than $4 billion in the round at a valuation of $134 billion.
“We weren’t sure we’re going to actually be able to raise all of the five,” said Ghodsi, adding that there was heavy interest in recent weeks. He explained that venture capital can take months to adequately capture significant shifts in equity markets.
The investors in the new round include Goldman Sachs, Glade Brook Capital, Morgan Stanley, Neuberger Berman, and the Qatar Investment Authority. JPMorgan was the first to take part in the debt round, and now Databricks has billions of cash.
Ghodsi added, “If this correction hasn’t bottomed out yet, and it’s just going to continue, we’re just going to continue as a private company.” Databricks had previously grown bigger than the competitor Snowflake, which had revenues of $1.21 billion in the quarter ending in October.
The market value of Snowflake is approximately $58 billion. Databricks has increased its market reach with the broad release of its Lakebase database last week, competing with established players, including Oracle and SAP.
Both Oracle and Snowflake stocks have dropped by approximately 13 percent in the previous week when software stocks declined overall across the market. It occurred as investors were concerned that open-source extensions to the Claude Cowork AI-based productivity tool by Anthropic could provide new competition to publicly accessible software firms.
Ghodsi stated, “The correction is an overreaction, and you’re going to see all these companies be around, and nobody’s getting rid of them anytime soon. Their moat is shrinking.”
